Brenmiller Energy Obtains EIB Waiver for €1.7 Million Loan Payment, Progresses Toward Debt Resolution

EIB Waiver Postpones July Loan Payment

Brenmiller Energy announced that the European Investment Bank has granted a waiver providing temporary relief from the scheduled loan payment under the March 2021 credit agreement. The approximately €1.7 million payment due on July 28, 2026, has been deferred, with the waiver effective through September 15, 2026, unless terminated earlier or extended by mutual agreement.

This waiver preserves Brenmiller’s near-term liquidity amid ongoing negotiations for a broader settlement. The EIB agreed to temporarily waive certain rights tied solely to the scheduled payment, enabling Brenmiller to allocate cash toward operational priorities while settlement discussions continue productively.

Advancing Toward Comprehensive Loan Settlement and Debt Reduction

Both Brenmiller and the EIB are progressing toward a full and final settlement of the existing loan facility, which the company expects will result in a meaningful debt reduction relative to amounts otherwise payable. Brenmiller views this as a significant step that, if completed, would materially strengthen its balance sheet and enhance financial flexibility for growth initiatives.

The announcement highlights a constructive relationship between Brenmiller and the EIB. A finalized settlement would retire the debt obligation at a reduced amount compared to full repayment, though specific terms and timing remain under negotiation. The company cautions that "there can be no assurance regarding the timing, final terms or completion of any definitive arrangement."

EIB Financing’s Role in Establishing Gigafactory

Brenmiller emphasized the importance of its partnership with the European Investment Bank, noting that EIB financing was crucial in creating what it calls "the world's first gigafactory dedicated to producing thermal energy storage systems." This manufacturing facility laid the industrial groundwork for Brenmiller’s proprietary bGen™ technology and positioned the company for its next development phase.

Deputy CEO Nir Brenmiller remarked that the EIB’s initial investment enabled the company to transition its technology "from innovation to industrial-scale execution," forming a foundation relevant to Brenmiller’s forthcoming growth stage. The ongoing settlement talks aim to link the EIB’s contribution to the company’s industrial base with its next chapter under the BrenX strategy.

BrenX Strategy: Transition to Integrated Energy Developer

Brenmiller’s BrenX strategy signifies a major shift in its business model. Instead of primarily manufacturing and selling thermal energy storage systems, the company plans to integrate its proprietary bGen™ technology with renewable energy generation, energy management, and complementary infrastructure to develop, own, and optimize energy assets under long-term commercial arrangements.

This approach aims to generate sustained, recurring revenue through integrated energy platforms rather than one-time product sales. As the business model evolves, Brenmiller believes its capital structure should adapt accordingly. The ongoing settlement discussions with the EIB are designed to create a leaner balance sheet and greater financial flexibility to support BrenX’s requirements, freeing capital that would otherwise service debt.

Capital Structure Adaptation to Support Business Model Shift

Brenmiller stresses that the settlement process facilitates a necessary evolution of its capital structure aligned with its changing business focus. Transitioning from a manufacturing-centric company to an integrated industrial energy developer under BrenX calls for optimized financing. The expected debt reduction from the settlement would improve financial flexibility to invest in long-term energy assets and platforms.

Deputy CEO Nir Brenmiller stated that completing the settlement "would connect the EIB’s original contribution to Brenmiller’s industrial foundation with the company’s next stage of growth" and "help us build on the gigafactory, our technology and our operating experience as we work to establish BrenX as a leading integrated industrial energy company."

European Manufacturing and "Made in EU" Initiative

The company noted that the settlement process supports a "Made in the EU" initiative aimed at expanding European manufacturing, supply chains, and project execution capabilities as BrenX expands regionally. This alignment with European industrial development goals may explain the constructive nature of discussions with the EIB, a European development institution.

Brenmiller’s framing of the settlement as advancing broader European energy and manufacturing objectives underscores the strategic importance of its industrial infrastructure for the continent’s energy transition efforts.

Liquidity Preservation and Immediate Financial Impact

The waiver agreement preserves near-term cash by deferring the €1.7 million payment originally due on July 28, 2026, until September 15, 2026. This relief maintains liquidity that would otherwise be allocated to that obligation, providing Brenmiller with financial flexibility to sustain operations and pursue strategic initiatives during ongoing settlement negotiations.

The announcement does not disclose the company’s current cash reserves, total outstanding debt, or specific financial impacts of the waiver on consolidated financial statements. Investors may look for further disclosures on liquidity and debt-to-equity ratios in future filings or communications.

Uncertainties Surrounding Timing and Completion

Brenmiller acknowledges that settlement discussions are ongoing and subject to uncertainties. The announcement clearly states: "there can be no assurance regarding the timing, final terms or completion of any definitive arrangement." While the executed waiver marks progress, it does not guarantee a definitive settlement agreement or the terms of any final arrangement.

The company and the EIB are described as "continuing to work constructively," indicating positive momentum. However, investors should be aware that transactions of this nature often face delays or changes before finalization. The waiver’s expiration on September 15, 2026, serves as a near-term milestone, though no specific expectation for settlement completion by that date is provided.

Forward-Looking Statements and Risk Factors

Brenmiller’s announcement contains forward-looking statements about the anticipated benefits of the BrenX strategy, its ability to generate recurring revenues, and plans to replicate the BrenX model across Europe. The company warns these statements involve risks such as negotiation outcomes, trade and economic conditions, and geopolitical instability, notably in the Middle East and Israel, where it is headquartered.

Readers are directed to Brenmiller’s Annual Report on Form 20-F for the year ended December 31, 2025, filed with the U.S. Securities and Exchange Commission on March 25, 2026, for detailed risk disclosures. Investors should review these alongside this announcement to fully understand risks that could impact the company’s ability to complete the settlement or successfully implement the BrenX strategy.